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Tele-Communications 2.0: The Age of the Internet

Author

Listed:
  • Jerbashian Vahagn

    (University of Barcelona and BEAT, Av. Diagonal 696, 08034Barcelona, Spain)

  • Kochanova Anna

    (Cardiff Business School, CF103EUCardiff, UK)

Abstract

Over the past few decades, the Internet has become the major tool for communication, greatly replacing the traditional telecommunication technologies. We use industry-level evidence from 21 European countries and the period 1997–2007 and identify the changing effects of traditional telecommunication technologies and the Internet on the functioning of markets. Specifically, we show that the effect of the traditional telecommunication technologies on competition in services and goods markets has dissipated and has become insignificant during this period. In contrast, the effect of the Internet has gained a significant momentum.

Suggested Citation

  • Jerbashian Vahagn & Kochanova Anna, 2018. "Tele-Communications 2.0: The Age of the Internet," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 18(3), pages 1-8, July.
    • Handle: RePEc:bpj:bejeap:v:18:y:2018:i:3:p:8:n:11
    DOI: 10.1515/bejeap-2018-0068
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    References listed on IDEAS

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    1. Lars-Hendrik Roller & Leonard Waverman, 2001. "Telecommunications Infrastructure and Economic Development: A Simultaneous Approach," American Economic Review, American Economic Association, vol. 91(4), pages 909-923, September.
    2. Nina Czernich & Oliver Falck & Tobias Kretschmer & Ludger Woessmann, 2011. "Broadband Infrastructure and Economic Growth," Economic Journal, Royal Economic Society, vol. 121(552), pages 505-532, May.
    3. Vahagn Jerbashian & Anna Kochanova, 2017. "The Impact of Telecommunication Technologies on Competition in Services and Goods Markets: Empirical Evidence," Scandinavian Journal of Economics, Wiley Blackwell, vol. 119(3), pages 628-655, July.
    4. Robert Jensen, 2007. "The Digital Provide: Information (Technology), Market Performance, and Welfare in the South Indian Fisheries Sector," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(3), pages 879-924.
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    Cited by:

    1. Wei Yang & Peng Yang & Huaiwang Shi & Weizeng Sun, 2022. "Mobile Payment Application and Rural Household Consumption—Evidence from China Household Finance Survey," Sustainability, MDPI, vol. 15(1), pages 1-18, December.

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    More about this item

    Keywords

    telecommunications; the internet; product market competition;
    All these keywords.

    JEL classification:

    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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